Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
& k4 j1 O# Z% }1 G5 Q0 e" ]+ p6 h0 rBelow is an Interesting article I found, which says that.....Do not
0 C7 Z8 t6 V" E  Iexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
) F+ ^' k9 D% ~2 Z6 }0 W9 n  r% ]these oil producer will go bankrupt or out of the business even if
& s5 e7 \$ G6 B6 ]5 x# ~crude prices improves. This implies also to good names such as Shell,
: d% @" Y4 B) J0 x3 [: l$ m2 lEXXON, BG, BP, Cheveron ....xyz.. oils
  k0 X/ f/ e  ]$ J/ F
# j: |4 Y' |+ ^Recently OPEC reduced crude oil production twice over just a few
' A! d0 M0 g. s% I  I9 r0 a  ~$ lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
8 s' H( O5 I: w8 V4 {5 D8 mA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

7 o" ^( `  e6 n3 ?4 Q
2 m' v  r: L: S  x1 [/ R+ jThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

+ S1 V! @7 ?+ {1 f
1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
% }. i- w: w. E; N/ O* JArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
" U' ^( Q0 l9 EThis is the largest find in North America.
! F+ f, E& K" q! j5 A

3. New methods of injecting CO2 and surfactants into oil wells is
- J+ }; p3 A; |) r4 E& Mbeing used to double their output.
8 k& b. e2 Q4 l% `3 ~
7 }! e. R; h) {
4. Production of bio-fuels is beginning to reach critical mass. Bio
; o% Q$ q8 h" b% }' jfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

9 M# G6 a: E! S6 G3 d
- A4 z1 g) V& k- q1 j0 c5. Virtually every restaurant in the US and all food processing plants
5 f; d+ Y1 Q# T: i# e; uare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
8 h) X) A1 X: l- fto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
: O4 S; R0 V( C0 c/ _4 k; w
) Z: |1 ~: n: p
5 o5 J( W- o9 w0 k& x* F2 X6. There are 99 nuclear reactors in various stages of planning and
9 Z! h, u" n7 h# q( L: bconstruction around the world at this time. Several hundred more are
4 [% @1 Q1 Z' sexpected to be built in the future. Much of the energy they produce
; E6 ^% E, c: p$ [% W, zwill replace oil.
4 {! ~  d0 s7 j: O& n8 H
- F9 B" k9 U  ^
/ K& A) }  i* p! S. e7. Every company in any form of transportaion business is replacing
& H! B9 p/ b( V( W( p4 ?older equipment such as trucks, airplanes, train engines, ships, etc.
7 }" z% R2 f7 Ewith new more fuel efficient equipment. Airlines and railway companies
% j% R. E7 Z. g4 d5 Fare experiencing 20% to 25% better fuel econony with the new
equipment.

  l: p+ M5 N" Z3 M8 R) z
8 O! J" m3 ~2 J) I- Y  E2 F5 IAirlines are flying airplanes with bio-fuel. They are finding the bio-
& M  ]+ t7 k" rfuel is cleaner and performs better than jet fuel.


9 I4 u2 h+ w% R1 J$ U1 T6 Y' j8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
" a. I0 ~& K# A9 t8 S! pavailable at very little cost or risk. The gas is displacing crude
6 K8 Q5 R* b. R0 Xoil.
4 R; N3 K: c; q: `+ J3 L9 ]9 ]& z8 P
# G/ @' `1 {% \" O# N
( [% @) g! I- }9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
9 L: R' v- y, r& coil wells.


. G3 a7 F  o1 G. M10. Solar, wind and ocean energy is displacing oil as an energy
* _" B4 A. N8 X& N8 l) \! J$ ?source. Three new wind turbines are being erected every day in the US.
" |. {  p0 ~" D' I9 ?# H, O! V
" G9 Y9 i4 G; Z
6 R9 {9 C8 ?' k- P8 s+ BEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
! }$ H8 Q6 c; n, w) ]3 ~8 A6 P/ dchanging. The important thing is that OPEC no longer has the ability
( }9 ?: p3 M* E- V- ]0 cto control oil prices.
$ z* }) p) z6 r% q; s! Y3 ?2 i
7 [) t) Q; h  L# \. F7 q
With the above scenario, I still believe that there are under
7 b* Q, ^* F  |performed OIL companies and probably they are yet to get the justified
( W0 E" x- Z7 p, Rvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
1 R9 j7 x6 N" y* E

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only